KUALA LUMPUR: Gamuda Bhd posted a net profit of RM173.14 million for the second quarter ended January 2019, lower than the RM223.64 million a year ago.
The company said this was mainly because it had stopped recognising its share of Splash profits following its sale at the end of last year.
Its revenue, however, was higher at RM1.13 billion in the quarter than RM998.92 million in the corresponding period in 2018.
Gamuda expects this year’s performance to be driven by overseas property sales especially Vietnam and Singapore, the progress of Mass Rapid Transit (MRT) Line 2 that continues to pick up pace and steady earnings contribution from the expressway division.
“The two developments in Vietnam namely Gamuda City in Hanoi and Celadon City in Ho Chi Minh City continued to sell well and remained the biggest contributor of overseas sales,” it said.
Together with Singapore and Melbourne projects, overseas sales represent two thirds of group property sales.
On its property development business in Malaysia, Gamuda said a 50-acre Discovery Park, which is part of Gamuda Cove’s 372-acre commercial component, is targeted for opening in mid-2019.
More landed and high-rise residential components are targeted to be launched within the next six months.
Gamuda said the traffic volumes of all expressways had been stable and resilient.
“The company is currently in talks with the government in relation to the government’s proposed acquisition of all four tolled expressways owned by the company,” it said.
Splash, 40 per cent-owned by the group, was sold to Pengurusan Air Selangor Sdn Bhd for RM2.55 billion last year.
The upfront payment of RM1.9 billion is expected to be received in March 2019 upon completion of all condition precedents prescribed in the share purchase agreement.
Gamuda said the balance purchase price of RM650 million would be settled in nine equal annual instalments.